Innovation evaluation of DuPont

Biobutonal
Submitted By Manasi Das 2010019

Goa Institute of Management Sanquilim, Goa

Biobutanol - A recipe for renewable future In June of 2006, DuPont2 and BP announced a partnership to develop and market advanced biofuels designed to overcome many of the environmental and economic limitations associated with the biofuels then dominant in the market. The first product scheduled for commercialization was biobutanol. Sources of Innovation as per Druckers Framework :

1. Process need : Ethanol was the most dominant biofuel in the market when Biobutanol was launched , however it had certain disadvantages . DuPont indentified them and developed biobutanol, the chemical structure of which gives it several advantages over ethanol including low vapor pressure , high energy content , better supply and distribution dynamics and that it could be blended into gasoline at higher concentrations than ethanol without having to retrofit vehicles.. Therefore, it has the potential to reduce greenhouse gas emissions further than the standard ethanol blend 2. Industry and market changes : Climate changes lead to worldwide transformation of the markets. Growing Biofuels market : According to BP CEO John Browne , in June 2008 , Transportation accounted for around 20% of global emissions and hence the need to develop transportation biofuels. Emerging need to reduce global reliance on non renewable fossil fuels and imported oils and increasingly favorable policy environment for biofuels

3. New Knowledge

Biobutanol has several advantages over ethanol. These advantages stem in part from the novel method DuPont developed to convert plant sugars and starches into a combustible liquid, using an advanced biocatalyst instead of traditional yeast.

Innovation through alliance : The partnership was designed to leverage DuPonts world-class biotechnology and biomanufacturing capabilities with BPs fuels technology and marketing expertise. In this case, two companies that had long been leaders on climate and sustainability are pooled their resources and expertise to develop transportation fuels with a lower environmental impact when compared to first generation biofuels. Neither company could accomplish this biofuels venture without the strengths of the other. Both have a superior understanding of how climate will affect markets and both want to get ahead of the curve to gain competitive advantage in a fast-growing market. Is it Innovation and will it be successful Yes , It is an innovation.In 2010 DuPont was named among World's 50 most innovative companies by MIT Technology Review for its efforts to develop and commercialize biobutanol with partner BP . DuPonts recent 2011 Sustainability Progress Report shows the companys environmental footprint continues to shrink. DuPont delivered a 75 percent decrease in greenhouse gas emissions and a 6 percent reduction in absolute energy use since 1990, while increasing production 40 percent during that same period. Other potential drivers of success: scarcity and increasing prices of oil as a result of the oil crisis faced by countries all over the world Global warming and increasing need for reduction of green house gases